Using Mini-grants for Cooling Space to Foster Economic Development

By Sandy Buxton, CCE CAAHP

As a project that developed from concerns about small and micro-scale sized farms having access to funding for buying or upgrading cooling space, Cornell Cooperative Extension in Wayne County coordinated a working group of 5 educators to work on providing a solution.

The group sought funding through NYS Ag & Markets Agriculture Development Program and received a $230,000 grant to provide mini-grant cost-reimbursement funding to small scale farms and technical assistance to make the best possible use of the spaces.

Over 124 applications were received during the summer of 2013 representing 63% of NYS Counties and a widely diverse commodity selection (vegetables, fruit, horticulture, meat, dairy and alternative crops). Additionally, 47% of the applications came from women owned businesses.

Program Impact so far shows farmers have documented an increase in product quality OR a decrease in product losses in excess of $681,453 during the first year of the project. Farms have spent more than $377,603 in labor and materials on construction of their cooling sheds.

With an eye towards long-term economic development, CCE has documented more than 10.5 FTEs of direct permanent jobs have been created and more than 23.7 FTEs of seasonal jobs have been created by the more than 60 farms receiving mini-grants.

A number of the farms who have received the grants, which paid for up to 50% cost share of $6,000 of expenses, say the grant has offered them a chance to add or upgrade cooling space. Singer Farms Naturals, Niagara County, said, “Having ideal drying room, temp and humidity for storage has had a major impact on our garlic production and sales. By offering high quality bulbs, we have attracted larger consumer numbers that purchase other products. We are also carrying other local products and increasing all sales. This year, increased $5000 in garlic sales, alone.”

Apple Town Farm Market was one of the mini-grant recipients. The owners added some cooler space to better maintain some of their products between picking and sale.

Apple Town Farm Market was one of the mini-grant recipients. The owners added some cooler space to better maintain some of their products between picking and sale.

 

Another business from Northern NY said, “It is not so much the ability to increase production but the ability to hold the products value. We usually dispose of $10-15,000 worth of product each year because of deterioration during holding. Our new cooling system may eliminate ¾ of this loss without any excess production. Projected increase value of production and decrease losses in next growing season is $16,750.” (Whitten Family Farms – Winthrop, NY).

Our conclusion, by having CCE apply for consolidated money to disperse as mini-grants to farmers, it was possible to strengthen the application and demonstrate clear gains in income generation and job creation that would have been difficult on an individual farm basis.

The timeline also reduced frustration for the farmers since it was over 10 months from application deadline to when an approved contract allowed spending to begin.

With 84% of the grant dollars spent, the more than $1 million impact has already exceeded the original projection of increasing income to the farm businesses and local community in Year 1. The projection is an equal or greater impact in Year 2 with the participating businesses.

This is an excellent model for areas and groups to examine as banding together can enhance the ability to present numbers which demonstrate need and impact.

 

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